The Effectiveness of Anglo-American concepts of corporate governance and financial reporting in China

Huiying Wu, Hector Perera

Research output: Chapter in Book/Report/Conference proceedingConference proceeding contribution

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Abstract

Despite its impressive economic growth over the years, China has been criticized for poor corporate financial reporting and weak corporate governance. The concepts of independent director, audit committee, and auditor independence, which have been developed in an Anglo-American environment, have been identified in the literature as the key corporate governance issues which have a direct positive impact on financial reporting. China has decided to import these concepts in an attempt to make its corporate governance arrangements and financial reporting more internationally acceptable. This paper seeks to provide insights into the effectiveness of these imported concepts in China. The paper discusses the associated issues in terms of economic and political systems as well as cultural orientation in China, and raises some issues related to the achievement of expected outcomes. It argues that, at least in the short run, the effectiveness of adopting Anglo-American ideas in China is hampered by the lack of independence of directors, audit committees and auditors.
Original languageEnglish
Title of host publicationProceedings of the 9th Annual Conference of the Asian Academic Accounting Association
Place of PublicationDubai
PublisherAsian Academic Accounting Association
Number of pages29
Publication statusPublished - 2008
EventAnnual Conference of the Asian Academic Accounting Association (9th : 2008) - Dubai, United Arab Emirates
Duration: 29 Nov 20081 Dec 2008

Conference

ConferenceAnnual Conference of the Asian Academic Accounting Association (9th : 2008)
CityDubai, United Arab Emirates
Period29/11/081/12/08

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    Wu, H., & Perera, H. (2008). The Effectiveness of Anglo-American concepts of corporate governance and financial reporting in China. In Proceedings of the 9th Annual Conference of the Asian Academic Accounting Association Dubai: Asian Academic Accounting Association.